Best Credit Cards for International Travel

Using credit cards to make travel cheaper and more fun

Travelling comes with non-negotiable costs: flights, accommodation, foreign exchange fees, and insurance. Credit cards can give you these travel essentials for free or at a much lower cost. Nice!

Using rewards points for free flights, upgrades and hotels

You can earn points on credit cards for each dollar you spend or as a lump-sum bonus for signing up. Many rewards programs will let you use your points for flights, upgrades, hotels, holiday packages and more.

Frequent flyer programs like Qantas and Velocity will let you redeem points directly for flights and upgrades, while bank programs like ANZ Rewards may need to be converted to frequent flyer points first.

With the right card, you can also get something back on your spending in the form of rewards. Yep, you can earn rewards on this trip, which could help cover the cost of the next trip you take. Not only that, you can also benefit from added travel perks, such as the luxury of airport lounge access and the convenience of airport transfers, as well as essentials like travel insurance.

So, what do you need to know as you go about booking last-minute travel with your card? In this post, we’re going to look at each of the biggest travel rewards programs in Australia to find out what they have to offer, and how you can use them to your advantage. We’ll also get into how you can boost your points earn, while benefitting from all those lovely travel perks.

Who offers travel credit cards

There's no shortage of providers in Australia who offer travel credit cards. Depending on whether you want points or perks, take your pick from:

• Qantas Points earning credit cards
• Velocity Points earning credit cards
• Amex Credit Cards
• Altitude credit cards
• ANZ Rewards credit cards
• CommBank Awards credit cards
• NAB Rewards credit cards
• Citi Rewards credit cards

How to earn and use Status Credits

Status Credits are a feature of frequent flyer programs like Velocity and Qantas. The more Status Credits you earn through flying or on your credit card, the more privileges you unlock.

For example, you might get priority check-in, lounge passes, bonus points or seat upgrades.

Some credit cards also include Status Credits as a bonus perk for signing up, or each year you have the card.

How to redeem your rewards points

Typically, you'll get the most value from your points when you use them for travel rather than toasters.

You can redeem your points on your rewards program's app or online portal. Once you log in, you'll often be able to choose to redeem points for:

• Frequent flyer miles with another program.
• Partner hotels or car rental agencies.
• Merchandise like electronics, retail, dining and services.
• Concierge services.
• Purchases you've previously made, almost like a cashback program.

How to use credit card points for flights?

Depending on what rewards program you've signed up for, you will be able to use your points in a number of ways. For Qantas and Virgin simply start booking your flight while logged into your account. You'll be able to toggle "Points plus pay" when selecting a flight.

For other programs you will probably need to transfer the points out to your chosen program and then book with that airline. One of the best things about this method is that you're not locked into the two major Australian Airlines. It may cost a few more points, but if you really want to fly with Singapore Airlines or Etihad, you'll have those options available

Transferring rewards points to airline miles

Travel insurance included on Australian credit cards

You should always have travel insurance when you're away. Credit card travel insurance is underwritten by big-time insurance companies like Allianz, CoverMore or Zurich. That means you're getting similar cover to the kind you would if you bought standalone insurance, except it's free.

What's covered?

Travel insurance generally covers Australian trips, overseas trips or both. Every policy is different, so be sure to read the terms and conditions carefully before you travel.

• Overseas emergency medical assistance, such as hospital treatment, doctors, ambulance and emergency evacuation.
• Cancellation or curtailment of your trip, which may see reimbursement of prepaid, non-refundable travel costs if your trip is cut short by illness or death, for example.
• Lost or stolen baggage or personal effects, which may include delays in luggage arriving at airports.
• Coverage of accommodation and meal expenses if flights are delayed or cancelled.
• Personal liability cover if you accidentally cause damage or injury to someone else while travelling.
• Accidental death or injury cover (which may look like a lump sum).
• Domestic travel inconvenience cover if your interstate flight is delayed or cancelled in Australia.

What doesn’t credit card travel insurance cover?

Some high-risk activities and conditions aren’t covered by typical insurance cover (if it’s possible). For instance, some insurance may not cover pre-existing medical conditions or travel to certain countries.

High risk activities like skiing, snowboarding, scuba diving, mountain biking and mountaineering won’t be covered unless you add it at extra cost through a specific travel insurer. Cruises are sometimes included but often not (for instance, Bendigo Bank states cruises are covered, but it’s always best to contact the card issuer directly to check).

How do I know I'm eligible?

Usually your travel insurance automatically activates when you meet certain criteria. That might look like:

• Buying your return flight on the card
• Spending at least $500 on flights, accommodation or trip costs
• Being under the restricted age limit (most insurances cut off at 79 or 80 years old)
• Being an Australian citizen

That's just a snapshot, and you'll need to read the eligibility section in the card's T&Cs to make sure you're covered.

Other nice features to look for

Many rewards cards are aimed at travellers, so you might also get perks that make your trips cheaper. For example, you might get:

• Discounts on hotels, car hire or holiday packages
• Rental vehicle excess insurance
• Airport lounge access
• Waived currency conversion fees
• Bonus points for spending with certain travel partners

I'll explain each feature briefly to show you how it works.

Before you go (literally)

Before you rush off to apply for a card and book your holiday, you need to weigh up if that card is worth its annual fee. These are the most important things to know about travel credit cards to make sure you're getting the best deal:

• Weigh up the cost of annual fees.
  Cards with loads of features and points generally have higher annual fees. Will you earn enough points and use enough features to make the card worth it?
• Avoid interest.
  Interest kills value on any card, but especially on high interest rewards cards and premium cards. Always pay off your card balance before it attracts interest.
• Stick to one rewards program.
  You'll usually get more value if you concentrate on one rewards program instead of many. Look at programs that offer points transfer options if you need more variety.
• Choose different cards for different tasks.
  Rewards cards work best as rewards earners, and may not be flexible enough to cover all your bases. It may have high currency conversion rates or not include travel insurance. So, it's ok to consider more than one card to make your travel cheaper overall (just watch out for annual fees).
• Don’t overspend. This is especially true if you have a number of cards on the go. Don’t be tempted to spend simply because you have available credit. Keep track of spending using your card’s app, and set a manageable budget.